Case: Power Grid Corporation of India Limited Vs Rajasthan Rajya Vidyut Prasaran Nigam Limited and Ors.. Central Electricity Regulatory Commission
| Judges | Bhanu Bhushan and R. Krishnamoorthy, Members |
| Issue | Electricity Law |
| Judgement Date | April 27, 2011 |
| Court | Central Electricity Regulatory Commission |
Order:
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The application was made for approval of transmission tariff for the transmission elements given in the table below under Rihand STPS Stage-II Transmission System (the transmission system) in Northern Region for tariff block 2004-09 based on the Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2004, (hereinafter referred to as "the 2004 regulations") after accounting for additional capitalization during 2005-06:
S. No.
Name of Asset
1.
400 kV D/C Rihand-Allahabad-Mainpuri-Ballabgarh transmission lines with associated bays
2.
ICT-I at
Patiala 3.
ICT-II at
Patiala sub-station and LILO of one ckt of Nalagarh-Hissar transmission line atPatiala 4.
400 kV S/C Dadri-Panipat transmission line with associated bays
5.
2 nos of 220 kV bays at Abdullapur sub-station
-
The petitioner also prayed for the reimbursement of expenditure incurred towards publishing of notices in the newspapers and the petition filing fee by the beneficiaries.
-
The petitioner stated that one ICT each at Kaithal and Mainpuri forming part of the transmission system and commissioned earlier were taken out of service on 13.5.2006 and 18.5.2006 respectively and were diverted to Mandola and Ballabgarh sub-stations, under Rihand STPS Stage - I Transmission System. The petitioner has submitted that new ICTs at Kaithal and Mainpuri are expected to be commissioned shortly and therefore, it has proposed to file separate petition for approval of tariff in respect of these two assets for which provisional tariff has been allowed earlier.
-
The representative of the petitioner stated that audited accounts in respect of 220 kV bays at Abdullapur sub-station were not available. It was prayed on its behalf that final tariff in respect of this element would be claimed separately while making application for approval of final tariff in respect of the left out assets. Thus, in terms of the prayer made at the hearing, approval of final transmission tariff in the present petition is being restricted to the following four assets (hereinafter referred to as "asset"), namely:
S. No.
Name of Asset
1.
400 kV D/C Rihand-Allahabad-Mainpuri-Ballabgarh transmission lines with associated bays
2.
ICT-I at
Patiala 3.
ICT-II at
Patiala sub-station and LILO of one ckt of Nalagarh-Hissar transmission line atPatiala 4.
400 kV S/C Dadri-Panipat transmission line with associated bays
-
The investment approval for the transmission system was accorded by the Central Government in Ministry of Power under letter dated 9.12.2002 at an estimated cost of Rs. 104444 lakh (2ndt quarter 2002 price level), including IDC of Rs. 15749 lakh. The dates of commercial operation of the transmission assets and the line length are as under:
S. No.
Name of Asset
Date of commercial operation
Line Length Ckt kms
1.
400 kV D/C Rihand-Allahabad-Mainpuri-Ballabgarh transmission lines with associated bays
1.6.2005
1757.252
2.
ICT-I at
Patiala 1.10.2005
126.20
3.
ICT-II at
Patiala sub-station and LILO of one ckt of Nalagarh-Hissar transmission line atPatiala 1.12.2005
22.87
4.
400 kV S/C Dadri-Panipat transmission line with associated bays
1.4.2006
116.65
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The transmission charges claimed by the petitioner under various heads are given in Annexure I of this order. The summary of these transmission charges claimed is given hereunder:
S. No.
Name of Asset
2005-06
2006-07
2007-08
2008-09
1.
400 kV D/C Rihand-Allahabad-Mainpuri-Ballabgarh transmission lines with associated bays
6512.26
7864.28
7953.55
9586.28
2.
ICT-I at
Patiala 792.37
1668.74
1659.74
1780.56
3.
ICT-II at
Patiala sub-station and LILO of one ckt of Nalagarh-Hissar transmission line atPatiala 189.37
626.35
625.85
633.06
4.
400 kV S/C Dadri-Panipat transmission line with associated bays
-
755.60
748.64
847.20
Total
7494.00
10914.97
10987.78
12847.1
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The details submitted by the petitioner in support of its claim for interest on working capital are given in Annexure II to this order. The summary of interest on working capital claimed is given hereunder:
S. No.
Name of Asset
2005-06
2006-07
2007-08
2008-09
1.
400 kV D/C Rihand-Allahabad-Mainpuri-Ballabgarh transmission lines with associated bays
166.64
204.08
209.65
241.85
2.
ICT-I at
Patiala 20.00
41.85
42.44
45.29
3.
ICT-II at
Patiala sub-station and LILO of one ckt of Nalagarh-Hissar transmission line atPatiala 4.74
15.35
15.59
15.97
4.
400 kV S/C Dadri-Panipat transmission line with associated bays
-
19.31
19.56
21.63
Total
191.38
280.59
287.24
324.74
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The reply to the petition has been filed by Uttar Pradesh Power Corporation Ltd, Jodhpur Vidyut Vitran Nigam Ltd., Jaipur Vidyut Vitran Nigam Ltd and Ajmer Vidyut Vitran Nigam Ltd. No comments or suggestion have been received from the general public in response to the notices published by the petitioner under Section 64 of the Electricity Act, 2003. CAPITAL COST
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As per Clause (1) of Regulation 52 of the 2004 regulations, subject to prudence check, the actual expenditure incurred on completion of the project shall form the basis for determination of final tariff. The final tariff shall be determined based on the admitted capital expenditure actually incurred up to the date of commercial operation of the transmission system and shall include capitalised initial spares subject to a ceiling norm as 1.5% of original project cost. The regulation is applicable in case of the transmission system declared under commercial operation on or after 1.4.2004.
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The petitioner has claimed the capital expenditure up to the date of commercial operation. The petitioner has further claimed additional capitalisation for the year 2005-06 for the three elements declared under commercial operation during 2005-06. The capital expenditure on the date of commercial operation and additional capitalization on account of works claimed by the petitioner for tariff purpose are given hereunder:
S. No.
Name of the transmission asset
Capital Expenditure on the date of commercial operation
Additional capital expenditure during 200506
Total Capital expenditure
Apportioned approved cost
1.
400 kV D/C Rihand-Allahabad-Mainpuri-Ballabgarh transmission lines with associated bays
58947.08
1324.59
60271.67
72537.88
2.
ICT-I at
Patiala 9924.98
1020.93
10945.91
12269.03
3.
ICT-II at
Patiala sub-station and LILO of one ckt of Nalagarh-Hissar transmission line atPatiala 2910.10
673.51
3583.61
5458.33
4.
400 kV S/C Dadri-Panipat transmission line with associated bays
5500.27
-
5500.27
5622.76
-
Clause (1) of Regulation 53 of the 2004 regulations provides-
(1) The following capital expenditure within the original scope of work actually incurred after the date of commercial operation and up to the cut off date may be admitted by the Commission, subject to prudence check:
(i) Deferred liabilities;
(ii) Works deferred for execution;
(iii) Procurement of initial capital spares in the original scope of works subject to the ceiling norm specified in regulation 52;
(iv) Liabilities to meet award of arbitration or compliance of the order or decree of a court; and
(v) On account of change in law:
Provided that original scope of work along with estimates of expenditure shall be submitted along with the application for provisional tariff:
Provided further that a list of the deferred liabilities and works deferred for execution shall be submitted along with the application for final tariff after the date of commercial operation of the transmission system.
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The details submitted by the petitioner in support of its claim for additional capital expenditure are given hereunder:
Year
Nature of expenditure
2005-06
Land
=
Rs. 0.48 lakh
Building and Civil works
=
Rs. 51.44 lakh
Transmission line
=
Rs. 922.31 lakh
Sub-station
=
Rs. 350.36 lakh
Total
=
Rs. 1324.59 lakh
ICT-I at Patiala sub-station, LILO of Nalagarh-Hissar transmission line at Kaithal, 400 kV S/C Patiala-Malerkotla transmission line & ICT-III at Abdullapur sub-station with associated bays
Year
Nature of expenditure
2005-06
Land
=
Rs. 4.5 lakh
Building and civil works
=
Rs. 9.52 lakh
Transmission line
=
Rs. 748.18 lakh
Sub-station
=
Rs. 258.73 lakh
Total
=
Rs. 1020.93 lakh
ICT-II at Patiala sub-station and LILO of one ckt of Nalagarh-Hissar transmission line at Patiala sub-station with associated bays
...Year
Nature of expenditure
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